\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 04 Hangzhou Chang Chuan Technology Co.Ltd(300604) )
Key investment points
Performance overview: in 2022q1, the company’s revenue was 540 million yuan, a year-on-year increase of + 82.4% and a month on month increase of + 21.5%; The total profit was 100 million yuan, a year-on-year increase of + 131.1% and a month on month increase of + 74.9%; The net profit was 87.38 million yuan, a year-on-year increase of + 92.7% and a month on month increase of + 4.6%; The net profit attributable to the parent company was 71.1 million yuan, up + 60.1% year on year and – 19.9% month on month; Net profit deducted from non parent company was 62.29 million yuan, up + 46.7% year on year and – 23.8% month on month.
22q1’s revenue, total profit and net profit reached a record high in a single quarter, and the revenue recognition of high-end SOC tester accelerated. The company’s main production base is located in Hangzhou. In the first quarter of 2022, under the influence of the outbreak of serious epidemic in Hangzhou and the Yangtze River Delta, the company actively organized production to make up for the delay in production and delivery caused by the epidemic. At the same time, benefiting from the accelerated recognition of high-end SOC tester revenue, the company’s revenue, total profit, net profit and other indicators hit a record high in a single quarter. With the subsequent acceleration of revenue recognition of high-end SOC tester and other businesses, the company’s annual revenue is expected to achieve rapid growth.
Continuously overweight R & D, equity payment expenses, income tax and minority shareholders’ profits and losses affect the month on month growth of net profit attributable to the parent company. 22q1 company’s sales / management / R & D / financial expense ratio was 6.9% / 6.4% / 21.5% / 0.1% respectively. The total expense ratio during the period was 35.0%, with a year-on-year ratio of – 3.3pp and a month on month ratio of – 4.6pp. Among them, the R & D expense remained at a high investment of more than 20%, promoting the continuous realization of high-end product R & D. 22q1 company’s gross profit margin was 53.1%, year-on-year -0.9pp, month on month + 0.3pp, net profit margin was 16.3%, year-on-year + 0.9pp, month on month -2.6pp. While the total profit hit a record high, the net profit attributable to the parent decreased month on month. We believe that it is mainly due to the confirmation of the company’s current equity payment expenses, the fluctuation of income tax expenses and other factors. In addition, the profit and loss of minority shareholders of the company was 16.28 million yuan, mainly due to the introduction of Changchuan intelligent manufacturing, a joint-stock subsidiary such as “big fund phase II” in December 20.
The layout of the rear test business is comprehensive, and the high-end SOC tester is expected to help the company grow at a high speed. The company focuses on semiconductor back channel testing equipment, with testing machine as the core, and the development of sorting machine, probe table, AOI and other categories. The gross profit margin of testing machine business is high, and there is a large space for domestic substitution in SOC, digital, storage and other testing machine fields. The company’s testing machine business includes high-power testing machine, analog testing machine, digital testing machine, etc., and continues to focus on the research and development of probe platform, digital testing machine and other related equipment, and has received a number of government subsidies in the field of SOC testing. In the future, the company will benefit from the large volume of high-end testing machine business such as digital and SOC, and the order revenue is expected to continue to grow at a high speed.
Profit forecast: benefiting from the deepening of the company’s platform layout and the large-scale expectation of high-end digital and SOC testing machines, the company’s net profit attributable to the parent company is expected to be RMB 510 / 80 / 11.1 billion from 2022 to 2024, corresponding to pe36 / 23 / 17 times, maintaining the “buy” rating.
Risk tip: the industry competition intensifies, the promotion of new products is less than expected, and the downstream demand is less than expected.
